Calculating the Accounting Rate of Return, Payback Period, and Net Present Value Lenny’s Limousine Service (LLS) is considering the purchase of two Hummer limousines. Various information about the proposed investment follows.

Required:

Help LLS evaluate this project by calculating each of the following:

1. Annual rate of return.

2. Payback period.

3. Net present value.

4. Based on your calculation of net present value, what would you estimate the project’s internal rate of return to be?

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